2023-12-13 13:00:02
Within the restructuring agreement of the Renault-Nissan Alliance, it was established that the French manufacturer would reduce its participation in the shareholding of the Japanese company, going from 43% to the same 15% that the Japanese had over it.
To do so, Renault transferred its shares to a French fund to sell them progressively – it was guaranteed that it would vote neutrally in the decisions relevant to Nissan – which happened on December 13 with an initial 5% for a value of around the 765 million euros.
This sale also represents a capital loss of around 1,500 million euros. This “will have an impact on Groupe Renault’s net profit in 2023 but will not mean any change in revenue.”
Those 1.5 billion are a maximum figure, which “could be reduced depending on Nissan’s capital distribution strategy,” the French said in a statement. In total, the operation contemplates the sale of a maximum of 211 million shares.
Nissan, for its part, stated that it would acquire Renault’s shares, using its priority right, and that it would cancel the titles. The Japanese manufacturer declared that the cost of this operation would be around 119.95 billion yen, in line with the 765 million that Renault mentioned.
The first phase of Renault’s strategy, called Revolution, has as its priority “returning to an ‘investment’ classification by analysts.” Until then, it will continue to increase its dividend distribution progressively until it reaches 35% of turnover and reaches 10% of employees in the shareholding in 2030.
On the other hand, the manufacturer intends to reinvest at least 50% of the surplus liquidity it generates, with a maximum of between 15% and 20% of its free cash flow into financial projects.
The Revolution plan involves the division of the manufacturer’s business areas into one based on electric mobility (Ampere), which will be based in France and in which Nissan will participate with an investment of 600 million and Mitsubishi with 200 million.
The thermal and hybrid engine part (Horse) is based in Spain and has the presence of the Chinese group Geely, parent company of Volvo, Lotus and Polestar, in its shareholding.
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